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I understand that in poor countries that things that would be considered luxury items things can be quite expensive but when it is countries that are all more or less quite financially well off why can things be more expensive from one country to the next?
For example, as a video gamer the new Nintendo system in the U.S is priced at $299.99. I have heard from some Canadians that it means it will be closer to $400 bucks, and shockingly, some from Australia said it could be close to $500 (all based on what the U.S price is). As a U.S resident I have heard before how whatever the U.S price is it'll be a lot more for Canada and especially Australia, just as an example.
Quite often it is tariffs or value-added taxes (or both) that cause the price discrepancies between developed States.
Goods and services tax (GST) is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia.
Note that the two States you named also have small populations of ~30 Million each. Marketing & Advertising costs must be recouped as well, and those costs are typically higher in States with smaller populations.
Market demand, in some countries it isn't worth setting up a marketing organization because there aren't enough buyers with the cash. A local importer/distributor can set his own prices.
I understand that in poor countries that things that would be considered luxury items things can be quite expensive but when it is countries that are all more or less quite financially well off why can things be more expensive from one country to the next?
For example, as a video gamer the new Nintendo system in the U.S is priced at $299.99. I have heard from some Canadians that it means it will be closer to $400 bucks, and shockingly, some from Australia said it could be close to $500 (all based on what the U.S price is). As a U.S resident I have heard before how whatever the U.S price is it'll be a lot more for Canada and especially Australia, just as an example.
What causes such drastic discrepancies in price?
The system costs $470 AUD, $100 of the difference is because of the USD/AUD exchange rate variance, and $43 tax would also in included in Australian price (all prices in Australia are quoted as tax inclusive). Taking those factors into account the difference is AUD $27.
So is there anything that could be done to make things more even? Or at the very least make it where it what would be priced reasonably in the U.S for example doesn't cost an arm and a leg and your first born in Australia?
So is there anything that could be done to make things more even? Or at the very least make it where it what would be priced reasonably in the U.S for example doesn't cost an arm and a leg and your first born in Australia?
The other thing nobody mentioned is lower U.S. wages for retail workers and a general lower cost of living in the U.S. The U.S. has fewer regulations overall, and that usually translates into lower prices.
So is there anything that could be done to make things more even? Or at the very least make it where it what would be priced reasonably in the U.S for example doesn't cost an arm and a leg and your first born in Australia?
There is no reason things should be more even.
Here in the USA, price of gasoline varies between states. Should that all be the same? Price of gasoline varies between gas stations within the same city - should that be the same also? If you think those examples should be the same, then you are advocating for a centrally planned economy which was a core part of Marxist-Leninism and which has been rejected almost everywhere (Cuba is an exception).
If you think prices should be the same globally, it won't happen unless there is a single, centrally planned government for the entire planet. That may occur in 1000 or 2000 years, but I would not count on it.
I suggest you take some courses in macro-economics.
The other thing nobody mentioned is lower U.S. wages for retail workers and a general lower cost of living in the U.S. The U.S. has fewer regulations overall, and that usually translates into lower prices.
Nope.
Try buying a laptop computer, Kindle reader, etc. in somewhere like Thailand or Panama. Way more expensive than the United States for comparable model, and I can assure you neither retail wages or cost of living are lower than in the United States.
The only advantage is cell phones if you want a used one. New one will cost more than back in US but there is a lot more retail availability of used phones in malls.
Duties in countries such as Costa Rica and Colombia are pushing 50%. I have taken boats over to assorted Latin American countries and have always been asked to put a TV or two, ceiling fans, microvaves, radios and cell phones on board for a select few people. My wife is Colombian and always stocks up on clothes before flying down. This year she bought her niece an iphone. Regular people just can't afford these items if bought there on a 50/week salery. They are considerably more then here. Cars and gas as well is expensive. They always fall in line about 50% higher, about the cost of duties.
As far as other first world country's? People praise their systems of "free" healthcare and "free" university as well as other benifits. I think this just shows that free is not really free as the money comes from somewhere!
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